European Stock Market Surges on Trump Tariff Delay
European shares surged on Monday as President Trump delayed imposing a 50% tariff on the region. The STOXX 600 index rose 0.9% after Trump's surprise tariff threat last Friday. The European markets responded to the tariff extension relief, with gains seen across automotive, luxury, banking, and technology stocks.
European shares rebounded significantly on Monday after U.S. President Donald Trump postponed his proposed 50% tariff on the region. The pan-European STOXX 600 index climbed 0.9% as markets opened following Friday's 0.9% loss, triggered by Trump's unexpected tariff threat on the European Union due to stalled negotiations.
On Sunday, Trump extended the tariff deadline to July 9 from June 1, after European Commission President Ursula von der Leyen appealed for more time to negotiate a deal. This announcement propelled automobile stocks by 1.1%, with prominent gains in Stellantis, Mercedes, and Valeo.
Luxury, banking, and technology stocks, all sensitive to U.S. economic conditions, saw advances ranging from 0.9% to 1.7%, driven by Trump's tariff retreat. Investors noted a shift away from U.S. assets due to rising fears of economic slowdown and political tension.
(With inputs from agencies.)
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